Advice on setting up as a freelancer

After reading all the talk here I have chosen to register as a freelancer in Berlin

BUT how do I do this, if some one knows: what authority I need to go to, what documents I need, how long it should take, what tax rate I will pay, will this be payable on rental income, will I be automatically registered for VAT or is this another process, will my UK registration become void or do I need to go back to take care of that (I am only a 'normal' tax payer in the UK not a freelancer)

any answers to the questions above would be much appreciated

Answer to all questions: go to (or call) your local Finanzamt.

And read some of these threads on the subject.

Third answer: contact a tax adviser. You will need one sooner or later.

STB is right. Especially since you can't just choose to register as a freelancer - you can only try. Depending on what your profession is, the wording will be important as there are only certain professions which are accepted (far too many to list, but on the whole they have to do with you selling the service of what is in your mind, given credence by what you studied or qualified in. Examples being doctors, translators, teachers, and in some cases consultants). I was borderline as what I studied (languages and literature) did no match the service I am selling (technical project management) but with the help of the tax avisor I got accepted.

If the Finanzamt refuses the status as freelancer (which you apply for using a formwhich they send you - you can get this form from the Finanzamt and then take it to the tax advisor), you will be given the status as Gewerbetreibende/r, normal self-employed, which gives you the same advantages as freelancers have but also incurs more tax - logically enough Gewerbesteuer.

This all appies to EU citizens; I have no idea of regulations for non EUs.

Do you speak German? Are you under time pressure? Some organizations in Berlin offer free or very inexpensive courses for people who want to set up their own business (duration 3-4 days). They might not all be good, but you could for example check this link: www.gruender-beraten-gruender.de.

hi all

I am a photographer and film maker doing documentary projects, but I also sponsor artists and organise exhabitions for them from which I take a commission. I studied at a School of Fine Art for 2 years then transferd to a Professional Photography degree, this was all in New Zealand but I have a British passport thanks to my parents

I have also bought a couple of flats here and rent them out fully furnished to english speakers I am about to turn a profit on this soon so there will be tax to pay here too can I lump it all together as a freelancer ?

The taxation system is way too complicated to provide a yes or no answer to your questions. If you're working as a freelancer AND are acting as a landlord then you definitely need to get yourself a tax adviser. Internet forum are fine for finding out where to buy English newspapers, but you can't expect to get reliable tax advice from one. Do yourself a favour and get a tax adviser. Here are a couple of starters if you need an English-speaking one:

Financial adviser recommendations in Berlin

I am sure someone has already made this point on another thread, but it is always a good idea to start working with a tax consultant (Steuerberator) before you even start your business, earning money as a freelancer, etc.. so that you don't end up paying a high marginal rate of tax, or worse, end up owing fines or back payments to the pension system.

I agree that if you start getting complex cases then a tax adviser could be useful, but for basic freelancing it isn't rocket science with taxes. Maybe people are put off by all the numbers and the thought of it, but saying that you definitely need a tax specialist for basic freelancing is akin to saying you will definitely need an IT specialist to help you run your computer as a freelancer. In my opinion at least.

Sounds reasonable, but can a Steuerberator add value initially by helping the freelancer with tax deductions? Once the freelancer gets the hang of it, perhaps further consultation is not necessary. I think that there may be a sea difference between getting a computer to work and navigating what I have heard is the most complex tax system in the world. The consequnces for bungling your taxes are usually graver than screwing up operation of a PC. Just a thought.

Hi,

Contacting a Steuerberater is not a bad idea, however, these persons may not consult on other legal things as taxes, such as registering you with an office. Attorneys, also consulting in taxes (N.B. not all attorneys do so!). The difference between a Freiberufler and a Gewerbetreibender can be simply described as the difference between white and blue collar professionals.

Alexander

Hallo,

I am a qualified music teacher. I wish to register as a self-employed. However from what I read here it's not very clear what the process exactly is. Is it better to register in Germany OR can I register in my country of origin (EU) and would that still be valid in Germany? Anyone any ideas/links please share with me.

Thanks a lot.
Denitsa

Topics merged by admin

The way I see it, the only registering you would have to do, is telling the "Finanzamt" that you are going to start working "freiberuflich" as a teacher. Assuming you are allowed to work self employed in germany of course. You cant avoid that, because you are going to earn money in germany and therefor have to pay taxes. One consultation with a tax advisor before you start your business wouldnt hurt though.

A very basic question! Can someone go as freelancer while he is a full time empolyee?

Depends on your employer, your work contract and you need a work permit that allows self employment. Besides that I dont see any problems...